VCG Holding Corp. Announces Completion of Purchase of LaBoheme Gentlemen's Cabaret in Denver, CO

  
    
  
  
    
      VCG Holding Corp. (AMEX: PTT), a growing and leading consolidator 
      and operator of adult nightclubs, today announced that it has completed 
      its previously announced acquisition of LaBoheme Gentlemen's Cabaret in 
      Denver, CO. The definitive agreement for this acquisition was previously 
      announced in a press release dated December 6, 2007. The Company 
      received its liquor license and took over full operations on December 
      21, 2007.
    
    
      VCG Holding has purchased all of the assets including intellectual 
      property from 1443 Corp., the owner of LaBoheme, for $5.0 million. The 
      Company paid 3.6 times EBITDA and funded the acquisition through cash 
      and lines of credit. In the previous 12 months, the club generated 
      revenues of approximately $3.5 million and operating profits on a pro 
      forma basis in excess of $1.4 million.
    
    
      LaBoheme is a 12,000 square feet club and is directly across from the 
      Denver convention center’s main entrance. The 
      club’s EBITDA for 2007 is expected to be $1.4 
      million with add backs. VCG Holding’s 
      management estimates that EBITDA for 2008 will be over $1.5 million, as 
      a result of the major events in the Denver area for 2008 and the 
      realization of operating and marketing efficiencies. Further, the 
      Company expects to realize similar operating and marketing efficiencies 
      at its other Denver area clubs.
    
    
      Troy Lowrie, Chairman and CEO of VCG Holding, stated, “With 
      this acquisition VCG Holding now has five Denver area locations, 
      including the only two downtown locations in the city. We expect all of 
      our locations in Denver to have a very good year in 2008 with a number 
      of events occurring in the city including the Democratic National 
      Convention in August, as well as other major conventions.
    
    
      “The LaBoheme acquisition demonstrates our 
      business plan of clustering club locations in major metropolitan 
      markets. This technique allows key management to oversee multiple 
      locations and gain efficiencies in our operations. We now have five 
      locations in both Denver and St. Louis, and we expect to expand our 
      cluster operating model to the other cities during the next few years. 
      This acquisition brings the total number of acquisitions in 2007 to 12 
      clubs. Being one of a few adult entertainment consolidators, we look 
      forward to more accretive acquisitions in 2008 and beyond,” 
      concluded Mr. Lowrie.
    
    
      About VCG Holding Corp.
    
    
      VCG Holding Corp. is an owner, operator and consolidator of adult 
      nightclubs throughout the United States. The Company currently owns 19 
      adult nightclubs and one upscale dance lounge. The night clubs are 
      located in Indianapolis, IN, St. Louis, MO, Denver and Colorado Springs, 
      CO, Ft. Worth and Dallas, TX, Raleigh, NC, Minneapolis, MN, Louisville, 
      KY, Portland, ME, and Miami, FL.
    
    
      Forward-Looking Statements:
    
    
      Certain statements in this release are forward-looking statements within 
      the meaning of the Securities Litigation Reform Act of 1995. Such 
      statements are based on current expectations, estimates and projections 
      about the Company’s business based, in part, 
      on assumptions made by management. These statements are not guarantees 
      of future performance and involve risks and uncertainties that are 
      difficult to predict. Therefore, actual outcomes and results may differ 
      materially from what is expressed or forecasted in such forward-looking 
      statements due to numerous factors identified from time to time in the 
      Company’s reports with the Securities and 
      Exchange Commission, including our Annual Report on Form 10-KSB for the 
      year ended December 31, 2006. All forward-looking statements 
      attributable to us or any persons acting on our behalf are expressly 
      qualified in their entirety by these cautionary statements. All guidance 
      and forward-looking statements in this press release are made as of the 
      date hereof and we do not undertake any obligation to update any 
      forecast or forward-looking statements, except as may be required by law.